December 2017/ January 2018 Issue

Regional differences are still palpable in attitudes to investing in the strategy, according to Private Equity International's Perspectives 2018 survey.

From valuations to geopolitical issues, investors tell us the issues that keep them awake at night.

The International Finance Corporation is stepping up its bets on the country as the nation’s growth story shows no signs of abating.

The pension plan’s strategy to reduce GP relationships to a core group has not delivered the benefits it expected.

Fees and expenses remain a top concern for LPs but carry distribution is also a worry, writes David Turner.

Investors are placing increasing emphasis on environmental, social and governance factors in due diligence, our LP survey suggests.

The sovereign wealth fund has committed more than $1.2bn to the strategy of taking stakes in managers over the past three years.

Investors are asking general partners some tough questions about the OECD’s flagship tax avoidance project. Funds need to know how to address these worries, say partners Matthew Saronson and Richard Ward and associate Matthew Pincus of Debevoise & Plimpton.

Graphite Capital’s Markus Golser and James Markham describe how operational effectiveness sits at the core of value creation.

Western political instability is one of the top worries for Asia-Pacific investors, writes Sam McMurray.

LPs are increasing their appetite for co-investment, but with growing competition they will need to focus on the value they can bring to a partnership with a GP, say Pantheon partners Dennis McCrary and Jeff Miller.

North American LPs are pessimistic about private equity returns heading into 2018, writes Sam McMurray.

European LPs have been happy with their PE performance, but take nothing for granted, writes Sam McMurray.

CDH Investments was one of China’s first private equity firms. Chairman and founder Wu Shangzhi tells PEI how the market is developing.

Historically high prices remain a big investor concern as we head into 2018, LPs told our Perspectives Survey 2018.

The buyout shop’s Double Impact business is small and has a lot to prove. PEI speaks to managing director – and former Massachusetts governor – Deval Patrick.

Credit Suisse’s Jonathan Abecassis responds to PEI’s assessment of GP-led fund restructurings and the need for a genuine ‘do-nothing’ option for LPs.

What are the greatest private equity funds of all time? PEI is pleased to present the HEC Private Equity Value Creation Hall of Fame and reveal its first entrant.

LPs are increasingly seeking closer alignment with Asian private equity managers as the industry diversifies away from traditional fund structures, an Intertrust report revealed.

The Central and Eastern European region offers LPs emerging market potential in a developed market framework.

The investor dynamic in the next 10 years will be less of a US dollar-denominated performance-based business, says MVision chief executive Mounir Guen.

When raising a successor fund, an equilibrium needs to be struck between cloning the previous Limited Partnership Agreement and making wholesale revisions, write Joseph Smith, Jason Behrens and David Miller of law firm Schulte Roth & Zabel.

Pomona Capital’s chief executive officer, Michael Granoff, reflects on the evolution of the secondaries market, today’s environment and what 2018 has in store.

As the private equity asset class has grown, so has the need to outsource the fund administration function. Srikumar T.E. of Apex Fund Services considers what’s in store for this growing industry amid increased reporting requirements from LPs.

Family offices have the most positive attitude to private equity since PEI began surveying them five years ago, writes Sophie Colby.

The EBRD’s private equity head Anne Fossemalle discusses the lesson learned from the 2008 crash and how it taught GPs to listen to their investors.

As the private equity industry matures, some of its iconic founders are addressing the future of their firms – and how to keep their legacies alive.

When it comes to the use of subscription credit lines, private equity firms will not be able to please all the LPs all of the time.

The Paradise Papers offer titbits to titillate readers. For the private equity industry, however, there are more important trends to consider.

Over the last six months, our fund finance focus section has covered credit facilities in private equity funds and beyond. We round up the key takeaways.

The firm is seeking to increase the number of multi-decade strategic partnerships to assist future fundraising cycles across asset classes.

Temasek’s upcoming Astrea IV deal could herald a way for retail investors to access private equity in earnest.

The House bill includes a proposal to limit interest deductibility, and measures that will increase personal taxes paid by fund managers.

The institutionalisation of the private equity industry brings with it a changing of the guard. It is necessary, inevitable and a little sad.

Investors and fund managers alike are waking up to the appeal of GP interest vehicles.

Two industry giants have unveiled details of their transitions from founder control to the next generation. Will Blackstone’s Schwarzman be next?

Deal count looks to be slackening in sub-Saharan Africa and the Middle East and North Africa region.

Distressed asset players are flocking to the country, driven by regulatory changes.

LPs typically try to price risk in emerging markets differently, leading to a notional return premium. Warren Hibbert, the co-founder of Asante Capital, discusses how it comes about.

Investment into the US’s neighbour remains robust despite the threat to the trade agreement.

Quantity, rather than quality, is the challenge when recruiting buyout talent in emerging markets.

The fund plans to dip its toes in private equity waters from 2018.

An immature market has seen few secondaries deals, but a few key transactions could lead the way.

With big changes in many of the Latin American economies, the firm is considering its next fundraising move in the region.

The Middle Eastern firm's global ambitions are characterised by its single emerging-markets fund.

These markets force managers to be creative around the standard structure.

The pension is making headway in its mission to up its emerging markets exposure, but is still looking to add new managers.

Mansour Group’s family office is betting big on direct investments.

The development bank's Anne Fossemalle urges LPs to see beyond geopolitical tensions to the rich investment opportunities beneath.

An impending upswing could mean time is running out for investors without a presence on the continent, according to the head of Angola’s sovereign wealth fund.

Where do GPs see opportunities? How much will LPs commit over the next two years? How are EM funds performing? Private Equity International crunches the key numbers.

Mutual funds in Taiwan can launch domestic private equity vehicles, but are they ready?

Sentiment, fundraising and deal volume for the continent.

A key recent deal from the region.

The region's currency risk is a major concern for investors, while deal count in 2017 has lagged behind the equivalent 2016 figures.

A key recent deal from the region.

Political risk is a key concern for investors across the region.

A key recent deal from the region.

A key recent deal from the region.

A revamped internal structure, new business lines and a focus on separate accounts have helped the firm thrive in a tough market for funds of funds, says head of secondaries Wouter Moerel.

An entrepreneurial market and maturing private equity industry means the country is throwing off its ‘frontier’ mantle.

Asian private equity markets are often misunderstood, but could hold great potential for those willing to take the first step, says Samena Capital’s Shirish Saraf.